Sometimes, a medical practice may be put on the market by its private owner, and when the time comes for multiple parties to buy and sell a dental practice, there are some factors for each the buyer and seller to consider. When it comes time to buy and sell a dental practice, the seller must know the value of what they are selling, and of course they should have good reason to give up something profitable like a dental practice. A dental practice appraisal may be done to determine the value of the practice. “What is my practice worth?” That’s a fine question for the seller to ask, and to sell your dental practice is to get the details beforehand. When you sell your dental practice, you are handing over a profitable medical practice to a new owner. This deal should be done right, and to buy and sell a dental practice is to find oneself dealing with a lot of paperwork. Dental appraisal is one of the first steps to this process. What else is there?
Dentistry Today
Someone involved in the “buy and sell a dental practice” situation may first want to know how strong the dental industry is today in the United States. Many trends show that dentistry is indeed strong. In fact, dentistry ranks among the top 10 most trusted and ethical professions in the United States, and many millions of Americans go to the dentist or take their kids there every six months or annually. Dentists are backed up by dental assistants, who in fact may be dental school college interns looking to get some hands-on experience at a practice. These students and other assistants are highly motivated and see their work as no0t just a job, but a career. A patient is often in good hands.
This industry is growing, and more women than ever are taking part, making for a more diverse field. As of 2018, there were around 61 working dentists for every 100,000 Americans, and this figure may grow in the coming years. Why? The industry itself is expanding, and it has grown 2.5% in the last five years to reach a value of $135 billion sometime in 2019. And as of 2018, just last year, 32.3% of all of the 199,486 working dentists were women. The population of dental assistants may also see more diversity as the industry grows. Clearly, this is a strong field. What about the business to buy and sell a dental practice?
Appraisal and Loans
The seller of a practice may be planning to move their business elsewhere, or they may be getting into a different medical field entirely. At any rate, the seller of the practice should know its value so they can set a fair price, so an appraisal can be done by professionals. These professionals may look over the qualifications and number of dentists and dental assistants on hand, not to mention customer reviews and availability of tools and medicine at the practice.
The buyer, meanwhile, may be asked to pay something along the lines of $50,000 or even $200,000 for a practice, far too much to pay out of pocket. Someone looking to purchase a medical practice, such as a dental practice, is urged to approach banks and other lending services to apply for a loan. A good lender will give the customer a fair evaluation of their credit and promptly respond with a yes or no on the loan. Should the borrower get approved for that loan, they can negotiate the terms such as the interest rate and the length of the payment period. If a borrower gets a good deal, they can make the purchase and acquire a dental practice to run for a profit. The profits from this practice can help pay off that loan, and given how popular and trusted dentistry is, this may be quite lucrative.
Buyers may also note that dentists can be mobile. Most dentists work in a building, but some travel in repurposed RVs in mobile labs. Why? Some dental patients don’t have transportation to a building or can’t make time in their schedule to visit. So, the dentist simply goes to them instead. This can be done at office buildings or even college campuses.